Would a Hard Money Lender Loan on this Situation?? Newbie ?s :)

[Justin Koopmans]

So.. Here's the situation.

• I've found a property I would like to purchase 
• The bank won't loan on it because it needs some rehab
• I would like to get a hard money loan to purchase it and fix it up
• Then I would like to move into it and pay off the hard money loan with traditional financing.

I'm a newbie, especially to hard money, so help me understand... Is this possible with hard money? Most of the sites I have visited from BP's featured lenders page say explicitly that they will not loan on owner occupied homes. But "technically" it's not an owner occupied home right? At least during the course of the hard money loan. 

Is this an issue? If so, are there ways around this issue? 

Oh, and if anyone has any recommendations for hard money lenders that they've worked with in the past that would also be super helpful :) thanks a ton!

[Michael Noto]

@Justin Koopmans It's a complete no brainer for you to go the 203k route in this situation. You're lender doesn't like 203k because it is more work for him. Which I understand from his point of view,  but you have to do what's best for you. 

I would seek out a lender or broker that specializes in 203k loans in your area and work with them if your lender isn't willing to bend at all. I bet if you tell him that's what you want to do that he falls in line. 

I have clients here in Connecticut that have had good success going the 203k route, but I highly recommend choosing an agent and lender that have experience closing 203k deals. Process will go much smoother.